Does an empirical relationship exist between financial development and economic growth in SAARC countries?

Md Abdullah Al Mamun; Ranjan Kumar Mitra; Md Abdul Wadud

Does an empirical relationship exist between financial development and economic growth in SAARC countries?

Md Abdullah Al Mamun, Ranjan Kumar Mitra, Md Abdul Wadud

Western Sydney University

Research output: Chapter in Book / Conference Paper › Conference Paper

Abstract

![CDATA[Economic theories suggest that a sound and efficient financial system promotes economic growth by fostering efficient allocation of resources. This paper aims to investigate the theoretical prediction about the relationship between financial development and economic growth in SAARC countries. Generalized Method of Moment (GMM) has been applied on panel data of five SAARC countries covering the period from 1980 to 2012 to test the hypothesized relationship. As an empirical proxy for economic growth, the study uses annual percentage growth rate of GDP per capita. We employ four different indicators of financial development based on domestic credit provided by the financial sector institutions of respective economies. Result reveals notable positive effect of financial development on economic growth in SAARC countries, after controlling the time-constant country-specific effect or effects of potential biases induced by simultaneity. Thus, findings are consistent with the theories that predict a significant positive role of financial development in the process of economic growth of a country.]]

Original language	English
Title of host publication	Proceeding of the 7th International Conference on Data Science and SDGs: Challenges, Opportunities and Realities, December 18-19, 2019, University of Rajshahi, Bangladesh
Publisher	University of Rajshahi
Pages	5-13
Number of pages	9
ISBN (Print)	9789843464446
Publication status	Published - 2019
Event	International Conference on Data Science and SDGs - Duration: 1 Jan 2019 → …

Conference

Conference	International Conference on Data Science and SDGs
Period	1/01/19 → …

Cite this

Abdullah Al Mamun, M., Mitra, R. K., & Wadud, M. A. (2019). Does an empirical relationship exist between financial development and economic growth in SAARC countries? In Proceeding of the 7th International Conference on Data Science and SDGs: Challenges, Opportunities and Realities, December 18-19, 2019, University of Rajshahi, Bangladesh (pp. 5-13). University of Rajshahi.

Abdullah Al Mamun, Md ; Mitra, Ranjan Kumar ; Wadud, Md Abdul. / Does an empirical relationship exist between financial development and economic growth in SAARC countries?. Proceeding of the 7th International Conference on Data Science and SDGs: Challenges, Opportunities and Realities, December 18-19, 2019, University of Rajshahi, Bangladesh. University of Rajshahi, 2019. pp. 5-13

@inproceedings{913163d9bbcb4655a0ed26d7a29d8047,

title = "Does an empirical relationship exist between financial development and economic growth in SAARC countries?",

abstract = "![CDATA[Economic theories suggest that a sound and efficient financial system promotes economic growth by fostering efficient allocation of resources. This paper aims to investigate the theoretical prediction about the relationship between financial development and economic growth in SAARC countries. Generalized Method of Moment (GMM) has been applied on panel data of five SAARC countries covering the period from 1980 to 2012 to test the hypothesized relationship. As an empirical proxy for economic growth, the study uses annual percentage growth rate of GDP per capita. We employ four different indicators of financial development based on domestic credit provided by the financial sector institutions of respective economies. Result reveals notable positive effect of financial development on economic growth in SAARC countries, after controlling the time-constant country-specific effect or effects of potential biases induced by simultaneity. Thus, findings are consistent with the theories that predict a significant positive role of financial development in the process of economic growth of a country.]]",

author = "{Abdullah Al Mamun}, Md and Mitra, {Ranjan Kumar} and Wadud, {Md Abdul}",

year = "2019",

language = "English",

isbn = "9789843464446",

pages = "5--13",

booktitle = "Proceeding of the 7th International Conference on Data Science and SDGs: Challenges, Opportunities and Realities, December 18-19, 2019, University of Rajshahi, Bangladesh",

publisher = "University of Rajshahi",

note = "International Conference on Data Science and SDGs ; Conference date: 01-01-2019",

}

Abdullah Al Mamun, M, Mitra, RK & Wadud, MA 2019, Does an empirical relationship exist between financial development and economic growth in SAARC countries? in Proceeding of the 7th International Conference on Data Science and SDGs: Challenges, Opportunities and Realities, December 18-19, 2019, University of Rajshahi, Bangladesh. University of Rajshahi, pp. 5-13, International Conference on Data Science and SDGs, 1/01/19.

Does an empirical relationship exist between financial development and economic growth in SAARC countries? / Abdullah Al Mamun, Md; Mitra, Ranjan Kumar; Wadud, Md Abdul.
Proceeding of the 7th International Conference on Data Science and SDGs: Challenges, Opportunities and Realities, December 18-19, 2019, University of Rajshahi, Bangladesh. University of Rajshahi, 2019. p. 5-13.